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Definition: The measure of a stock's volatility (systematic risk) relative to the market as a whole.
StockJargon Advice: The beta of a stock is calculated by running a regression analysis. The result is a beta coefficient. If the beta coefficient is 1, the stock tends to be as volatile as the stock market. A beta greater than 1 means the stock is more volatile, while a beta less than 1 means it's less volatile.
It's possible for stocks to have negative betas. In this case, the stock tends to move in opposite directions than the market. One example is Anheuser-Busch, which is though to benefit when the market is doing poorly because more people turn to drinking.
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